Companies Firing Staff Reflect Kenya’s Crumbling EconomyKenya's economy is technically in recession with the government surviving on borrowing

The new Kenyan currency that is in circulation since June 1, 2019. The old notes are only valid until 30th September. [Photo/ BUSINESS TODAY]

Corruption is forcing Kenya to its knees with the economy taking a hit even as the thievery goes on unchecked.

Analysts say Kenya’s economy is technically in recession with the government practically surviving on borrowing.

With the country’s current public debt stands at about Ksh 4.884 trillion (USD$49 billion) or 56.4% of GDP, the National Treasury is said to be eyeing another Ksh 150 billion syndicated loan.

In addition, parastatals have been ordered to freeze development spending even on ongoing projects unless approved by Treasury as part of austerity measures. Commercial parastatals have also been asked to surrender extra funds held in their accounts.

In the telco industry, Airtel Kenya fired 60 employees in 2016 with plans to lay off more in 2017. Telkom Kenya announced plans to fire 500 employees in the same period. The number was almost half the 1,600 workforce.

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